Soybean, often referred to as "yellow gold," is a widely cultivated crop in Madhya Pradesh. However, this year has seen a significant drop in soybean prices, causing considerable distress among farmers. According to the Commission for Agricultural Costs and Prices (CACP), the cost of producing soybeans in India is approximately ₹3,261 per quintal. Yet, many markets are witnessing a steep decline in soybean prices, sparking growing discontent among farmers.
Soybean is classified as an oilseed and a pulse, and Madhya Pradesh and Maharashtra are the two largest producers of this crop in India. Farmers in these states typically benefit greatly from soybean cultivation.
Two years ago, soybean prices ranged between ₹5,000-6,000 per quintal, and soybean oil was priced at around ₹100-150 per kilogram. However, current soybean prices have dropped to ₹4,000 per quintal, even though oil prices have not decreased. Soybean is expected to hit the markets in November. Many farmers are holding on to last year’s stock, hoping for better prices, which has led to reduced supply in the markets. According to the Ministry of Agriculture, approximately 43,460 tons of soybeans were sold nationwide in August, a 30% drop from last year’s 62,465 tons.
Bablu Jadhan, President of the Indian Farmers Labor Army, stated in a media interaction that the declining soybean prices are reducing farmers' interest in the crop, as it is being sold below the Minimum Support Price (MSP). This is forcing farmers to consider cultivating other crops. He further mentioned that with the new soybean harvest expected to arrive in markets within a month, prices could fall even further. Farmers believe that the reduction in import duties has led to large-scale imports of soybean oil from other countries, causing significant financial losses for domestic farmers.
Soybean MSP 2024-25: For the 2024-25 marketing season, the central government has increased the MSP for soybeans by ₹292, raising it from ₹4,600 per quintal in the previous season to ₹4,892 per quintal.
